Gov’t to expand supports to meet $1 tn trade target

The South Korean government will take actions to boost the nation’s exports including expanding export marketing plans at home and abroad and trade financing instruments as exports are showing signs of contraction amid a sluggish global economy. 

The government promised utmost support for the nation’s exports, in an economic emergency meeting held Friday presided over President Lee Myung-bak. 

Above all, export marketing strategies will be expanded for increased exports in the fourth quarter (Q4) of this year by injecting eight billion won ($7.19 million) by next month. 

Particularly, FTA beneficiary products and part and component products will be tailored to meet the specific needs of market segments in a bid to attract foreign buyers. 

In addition, Korea Trade-Investment Promotion Agency’s (KOTRA) head offices in foreign countries will take a bigger role of supporting exports to eliminate difficulties facing small and mid-size enterprises. 

As such, the government is striving to expand exports because the nation’s goal of achieving trade worth $1 trillion, which was set two years ago, is unlikely to succeed. 

The nation’s total exports logged $408.4 billion until last month, down 1.5 percent from the same period a year ago, according to the Ministry of Knowledge Economy (MKE). 

Imports also contracted 0.9 percent to reach $389.7 billion during the same period. 

The nation’s exports can possibly edge down compared to the previous year due to worsening trade terms but reaching $1 trillion trade will be still achievable, predicted the government. 

However, the outlook is not much bright considering among 13 core export products, only five items including cars, car parts and petrochemical products saw their total export volume rise until September this year.